BP to lay off 4,000 workers this year

Oil and gas major BP plans to lay off at least 4,000 workers in its exploration and production unit worldwide by the end of the year, cutting its workforce down to 20,000, according to a memo seen by POLITICO.

That includes a reduction in the British company’s expats by 30 percent, to around 1,200, Lamar McKay, chief executive of BP’s upstream business, said in the memo. A BP spokesman confirmed the news.

The oil price slump has wreaked havoc on the oil and gas industry over the past 18 months, cutting into revenues and causing costs to rise.

BP has reduced unit production costs in its upstream business by 20 percent, but still operates with about 30 percent less production, 40 percent fewer wells and 50 percent fewer miles of pipeline compared with 2010, McKay said in the memo.

But the company needs to go further to make sure the money it makes is balanced against what it spends and pays in dividends to shareholders, he added.

“It is equally vital that we continue to manage our costs down using all levers available to us,” McKay said.

“I am very much aware of the impact these headcount reductions will have on many of you and your families. We will treat individuals affected by these proposals with care and with respect.”

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